Disappointment over Snowy Hydro budget spend

The $581m spend on roads and the Shepparton rail line upgrade was announced by Treasurer Tim Pallas, in this year’s Victorian Budget.

The Federal Government will spend $6 billion buying NSW's and Victoria's shares in Snowy Hydro Limited.

The Victorian Farmers Federation said it was disappointed only 12 per cent – or $268m of the sale proceeds - would be spent on the government’s much vaunted ‘road restoration blitz.’

President David Jochinke said more than half a million dollars from the sale was going to upgrades to the Ballarat and Wonthaggi hospitals

“We are extremely disappointed that this funding comes from the sale of the Victorian share of the Snowy Hydro Scheme,” Mr Jochinke said.

“Upgrades to essential health services should be funded from sustainable government income, not through the sale of an agricultural asset.”

Mr Jochinke said the funds from the Snowy Hydro sale were a chance to inject generationally transformative funding into regional roads, energy and water infrastructure. 

“Committing only 12 per cent of the proceeds from the sale to regional roads is a huge missed opportunity.”

“We challenge all parties, come November, to set maximum transport times to all forms of medical care, including chronic, acute and mental health services, and then commit to building essential services,” Mr Jochinke said.

“The Treasurer claims this budget holds true to the Government’s values, yet agriculture has been almost overlooked, as has a topic critical to rural, regional and city consumers – energy.

“Our state is in desperate need of a long-term energy plan.”

Victorian National Party leader Peter Walsh said regional Victoria had been handed another raw deal from the ‘city-centric’ Labor Government.

“Labor’s latest budget pours $25 billion into metro project blowouts but it’s more of the same old scraps off the table for the people of regional Victoria,” Mr Walsh said.

“(Premier) Daniel Andrews cut the $160 million Country Roads and Bridges fund when he was elected, but is now bragging about reserving $100 million to help councils with country roads. 

“Agriculture is the backbone of rural communities across Victoria, but there is not a single cent directed to new strategic research and development initiatives, there’s no new biosecurity measures, and the Food to Asia export strategy has been abandoned.”

Mr Walsh said the Fixing Country Roads fund was a smaller fund than the bridges commitment, over a shorter period of time - $100m over two years, for both regional and rural councils.

The Country Roads and Bridges Program was $160m for rural councils only over four years. 

The VFF’s grains council president Ross Johns said $941 million in the State Budget would end the road funding drought.

But it failed to deliver the transformational funding needed for safe and fit-for-purpose roads for all Victorians.

“After decades of neglect our roads are in extremely poor condition,” Mr Johns said.

“Agriculture not only needs roads to get goods to market but to receive the inputs required to grow our safe, sustainable and reliable agriculture products.

“Roads are essential to the Victorian economy with a quarter of our exports coming from agriculture.

“Without fit-for-purpose roads, we cannot grow the $13 billion of export earnings agriculture currently produces.” 

Mr Johns said it was a good start to the journey but there was a long road ahead before safe and functional roads were achieved, in regional Victoria.

“While we welcome this attention to roads, we challenge all parties to ensure that their 2018 election promises rise to the challenge and commit significant dollars to a long-term road funding program,” said Mr Johns.

Mr Jochinke said the VFF welcomed the government’s $11m commitment to a blackspot program to improve telecommunications.

The Government has also committed money to several water projects including the East Grampians Water Supply Project and the Mitiamo Stock and Domestic pipeline. “These are good initiatives,” Mr Jochinke said.

“We acknowledge that the Government has made a start, but for a government which claims Victoria is the fastest growing economy in the nation, it has failed to deliver much-needed infrastructure beyond the CBD.

“If you are serious about population growth, you must look beyond outer Melbourne.”

VFF vice president Brett Hosking said lifting the limit on the Young Farmer Stamp Duty exemption was welcome.

But Mr Hosking said the government had missed an opportunity to spend targeted funding, for young regional Victorians.

“The Victorian Farmers Federation asked the Government to lift the limit on the Young Farmer Stamp Duty Exemption.

“We are very pleased that the Government has listened and announced it will double the exemption to $600,000,” said Mr Hosking, 

“Increasing property costs are a significant barrier to young farmers buying their first farm. Thanks to this increased exemption, more young farmers will now be able to buy land to begin their farm businesses.

 “We are also encouraged by the $16.1 million investment in the growing agricultural exports initiative. 

“Agriculture contributes over a quarter of Victoria’s exports, and the quality and safety of Victorian food is world class.”

In a budget focused on training, the VFF was disappointed the government missed the opportunity to fund the ‘Bored to Board’ Shearing Apprentice Program. 

“This program, requiring only a small investment, could revolutionise the lives of unemployed young people and address a real need in the wool industry,” Mr Hosking said.